Net Zero Business Census: The UK tech sector is leading on net zero, but more support needed to help SMEs keep pace

The 2025 UK Net Zero Business Census delivered by Planet Mark in partnership with the UK Business Climate Hub and Sage provides the most comprehensive picture yet of UK businesses’ progress towards a net zero future.

The results show that while challenges remain, the technology sector continues to play a leading role in driving the transition, both through its own emissions reductions and by enabling decarbonisation across the wider economy.

Among the most encouraging findings from the Census is the performance of the IT and data services sector, which is showing consistent leadership on action. Over half of organisations in this sector have implemented energy efficiency measures, one in three have switched to renewable energy suppliers, and one in five have already developed a carbon reduction plan.

This demonstrates how digital businesses are integrating sustainability into operations, products and services. The sector’s innovations, from carbon accounting software and smart energy management systems to AI-driven analytics and cloud optimisation, are helping organisations measure, manage and cut emissions faster and more accurately.

Digital technologies are increasingly recognised as an enabler for every industry’s transition to net zero. Data-driven insights support more efficient use of energy and resources, while tools like digital twins and predictive maintenance reduce waste and improve asset performance. As adoption grows, these solutions are becoming critical to the UK’s long-term decarbonisation and productivity goals, whilst also ensuring that our current systems can adapt to a changing climate effectively.

Barriers remain – especially for SMEs

Despite this positive momentum, the Census reveals that many UK businesses are still struggling to take practical action on net zero.

Two-thirds (66%) of organisations surveyed cited high costs as a major barrier, while 57% reported difficulties accessing finance or grants. Only 11% of SMEs have set a net zero target, compared with more than half of large organisations. SMEs are also significantly more likely to report a lack of time, expertise and trusted information and one in four still see no clear business benefit to cutting emissions.

The Census calls for more targeted support for SMEs to overcome these barriers and seize the opportunities of decarbonisation. Recommendations include:

Expanding access to green finance, such as through “Help to Green” vouchers proposed by the FSB and UK Finance.
Boosting awareness of trusted guidance platforms like the UK Business Climate Hub, which provides practical advice and sector-specific roadmaps.
Improving consistency in supply-chain data requests through the proposed UK SME Sustainability Reporting Standard, to simplify and standardise expectations for smaller firms.

Digitalisation and data hold the key

techUK is pleased to see its position reinforced within the census; that digitalisation and data are essential enablers of net zero, helping to drive innovation and make sustainability more affordable for all businesses. Similarly, improved interoperability between data systems and sustainability reporting frameworks will be crucial in creating a consistent digital foundation for climate action.

Whilst digital tools will help to deliver a net zero UK, the report highlights that many still “don’t know where to start,” underlining the need to invest in digital skills and sustainability training. It is imperative that we ensure that businesses of all sizes are provided with the means to decarbonise.

As a Census Partner, techUK strongly supports this annual stocktake as a vital tool for understanding progress and targeting support where it is needed most. The 2025 results clearly demonstrate that while many businesses are taking action, greater regulatory clarity, consistent standards and easier access to digital tools will be essential to accelerate the transition.

The tech sector’s leadership shows what is possible when innovation and collaboration align. Government must continue to work with industry and regulators to ensure that we can reach our climate targets for a fair and inclusive net zero future. Read the full 2025 UK Net Zero Business Census report: www.netzerocensus.co.uk

techUK - Committed to Climate Action

Visit our Climate Action Hub to learn more or to register for regular updates.

By 2030, digital technology can cut global emissions by 15%. Cloud computing, 5G, AI and IoT have the potential to support dramatic reductions in carbon emissions in sectors such as transport, agriculture, and manufacturing. techUK is working to foster the right policy framework and leadership so we can all play our part. For more information on how techUK can support you, please visit our Climate Action Hub and click ‘contact us’.